CHARITY REGISTRATION NUMBER: 1093680 The Sustainable Natural Resource Management Association (UK) Unaudited Financial Statements 31 December 2023
The Sustainable Natural Resource Management Association (UK) Financial Statements Year ended 31 December 2023 Pages Trustees. annual report Ito7 Independent examinerfs report to the trustees Statement of financial activities Statement of financial position 10 Notes to the financial statements 11to19
The Sustainable Natural Resource Management Assoclation (UK) Trustees. Annual Report Year ended 31 December 2023 The tTUStees present their report and the unaudited financial statements of the charity for the year ended 31 December 2023. Reference and administrative detalls Reglstered charfty name The Sustainable Natural Resource Management Association (UK) SUNARMA UK Action Ethiopia Working name Charlty registratlon number 1093680 Principal office 4 Broadway Fore Street Hemyock EX15 3RF Devon The trustees P von Lany C Birchall M Roberts Y Teferi (Appointed 20 July 2023) Independent examiner N Smy ACA Weslcotts (SW) LLP Chartered Accountants Queens House New Street Hontton Devon EX14 1BJ Bankers Lloyds Bank plc 17 Cross Street Bamstaple Devon EX31 1BE
The Sustainable Natural Resource Management Association (UK) Trustees. Annual Report fcontlnts•d) Year ended 31 December 2023 Structure, governance and management Governing document The charity was formed and is governed by a declaration of Trust dated 10 June 2002. The charity is registered wtth the Charity Commission (No. 1093680) and its principal address is 4 Broadway, Fore Street, Hemyock, Devon, EX15 3RF. The charity registered with the Charities Commission on 3 September 2002. Action Ethiopia is the working name for SUNARMA UK. The charity offers technical and financial support to our sister Ofganisation (SUNARMA Ethiopia) in Ethiopia. This document will refer to the working name Action Ethiopia. Recruitment and appointment of management committee The charity is managed by a management committee who shall be Charity Trustees within the meaning of the Charities Act. The charity shall always have al least three trustees. In selecting persons to be appointed as trustees, the trustees shall take into account the benefits of appointing a person who is able by virtue of his or her personal or professional qualifications is able to make a contribution to the pursuit of the objects or the management of the charity- No person shall be appointed as a trustee who is under 18 years of age or in such circumstances that if he or she is already a twstee, he or she would be disqualified from office under the provision of the following clause. No persons shall be entilled to act as a trustee until after signing a declaration of acceptance and willingness to act in the trusts of the charity. A trustee shall cease to hold office if he or she is disqualified from acting as a trustee by virtue of the Charities Act. becomes incapable by reason of mental disorder. illness or injury of managing and administering his or her own affairs., is absent without the permission of the truslees from all their meetings held within a period of six months and the trustees resolve that he or her Offi be vacated,. or if the trustee notifies the remaining trustees of the wish to resign. ObjectNes and activities The principal objective of the charity is the advancement of education, the protection of health and the relief of poverty of the people of Africa. Action Ethiopia offers technical and financial support to our sister organisation in Ethiopia. The funds raised by Action Ethiopia are used to support programmes managed by SUNARMA Ethiopia. The project works with rural communities in Ethiopia to help them manage natural resources and build sustainable livelihoods more effectively. In planning our activities for the year we kept in mind the charity commission guidance on public benefit. Action Ethiopia has a large group of individual supporters that it communicates with digitslly and by letter. In addition information and progress is available on two websrtes, www.actionethiopia.org and www.sunama.org. Action Ethiopia also keeps in touch with supporters and the general public through Facebook and Twitter accounts.
The Sustainable Natural Resource Management Association (UK) Trustees. Annual Report (Continued) Year ended 31 December 2023 Achlevements and perfomiance Ethiopia has an ancient history that goes back millennia. For example the cultur8 in the area around Axum, in the North of the country, predates the Pharaohs, which is quite a claim and gives hope that the political difficulties of the last year will be overcome in a short time. Action Ethiopia's support of our sister organisation SUNARMA has this year been more indirect, providing funds and technical backup to the excellent team in Addis Ababa to enable them to carry out their work effectively. The following report provided by key members of each project, outlines their achievements. The team have guided the projects across Ethiopia, taking great strides in environmental management, sustainable economic development and fostering community resilience. In North West Ethiopia around Metema: Frankincense Initlatlve The Metema frankincense initiative, centred in North Gondar, has transfomied forest governance through strategic stakeholder engagement and robust training initiatives. Impressively, the project convened 35 key stakeholders in biannual workshops. fostering dynamic discussions on forest management enhancements. Training efforts notably exceeded goals. with 200 PFMC members, including a good mix of Men and women, receiving advanced training in group dynamics, conflict management and gender equity. These sessions exceeded participanl targets by over 250/0 improving communff(y capabilities in sustainable forest management. The fomiulation of comprehensive forest management plans for all participating forest cooperatives ensures a structured approach towards forest conservation and enterprise activities, induding the production of over 340 locally made fuel-saving stoves, enhancing both environmental sustainability and community livelihoods. The Metema project has made signrficant strides in biodiversity conservation and environmental management. particularly through its educational outreach, training an additional 158 community members, marking an impressive 610/0 achievement of its target. The strategic development and endorsement of community bylaws further improved cooperative govemance, helping to sustain environmental stewardship. On the agricultural front, the project has distributed over 770 grafted mango seedlings and 630 kilos of cowpeas, substantially improving community food security and soil quality through the nitrogen-fixing properties of the plant. These initiatives have collectively generated substantial revenue, with frankInnSe sales over ETB 23.5 million Birr. ai A handful of raw Frankincense
The Sustainable Natural Resource Management Association (UK) Trustees. Annual Report (eontinued) Year ended 31 December 2023 Achlevements and perfomiance (contlnu•d) Wof Washa Project: Enhanced Fuel-saving Stove Inltiative Despite challenges. the cooperative has produced and distributed 175 fuel-saving stoves, helping environmental conservation and providing health benefits for women. This initiative underscores a commitment to advancing suslainable technologies, even in difficult environmental and political conditions. Taking the stove home Tree Planting and Forest Restoration This extensive reforestation effort has led to the planting of over 350,000 tree seedlings across 70 hectares of previously degraded land, a substantial increase from previous years. This initiative has not only rejuvenated Ihe local ecosystem but has also improved environmental degradation issues like flwding and soil erosion, marking a significant improvement in ecologic21 heatth and stability.
The Sustainable Natural Resource Management Association (UK) Trustees. Annual Report (continued) Year ended 31 December 2023 Achievements and perfomlance (contlnu•d) Enhancing Llvelihoods around Wof-washa Forest In partnership with WeForest and local authorities, this projecl has laid the groundwork for integrating conservation efforts with community development. Through ongoing vegetation surveys and collaborative project launches, it has established a robust framework for the forests. continuing environmental and social improvement initiatives. We would like to thank the trusts and foundations that have supported us, including the many individual supporters who have helped advance the progress of so many Ethiopian communities.
The Sustainable Natural Resource Management Association {UK) Trustees. Annual Report (Gonlinued) Year ended 31 December 2023 Financial review The hiatus in project activity funded by Action Ethiopia as we develop new projects is reflected in a reduced income for 2023 of £44,436 {2022: £67,343). The total expenditure was £49,267 (2022.. £65,671). Our unrestricted reseNes having decreased to £13,59312022'. £17,692). Reserves policy The levels of reserves are important to help with the continued funding of projects undertaken by the charity and are continually monitored by the Trustees. The Action Ethiopia board agree and administer the disbursement of funds against a work programme agreed with field staff in Elhiopia. Occasional challenges on the ground such as environmental factors (drought, excessive rain etc) or delays in response of local stake holders can mean the project runs behind schedule. In this event the Action Ethiopia board will renegotiate the activities to bring the project back on track and this can result in the fluctuation of the level of restricted project reserves. The Trustees acknowledge their responsibility to ensure that the charity, at all times. retsins unrestricted reserves to ensure that it is able to fulfil its ongoing obligations. A target for these reserves has been set to cover 3 months of unrestricted expenditure. The free selVeS held at 31 December 2023 were £13.593 (2022: £17,692).
The Sustainable Natural Resource Management Association (UK) Trustees. Annual Report (¢ontlnued) Year ended 31 December 2023 Trustees, responsibllltias statement The trustees are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently., 2. observe the methods and principles in the applicable Charities SORP; make judgrnents and aoUntIng estimates that are reasonable and prudent. 4. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitrfs transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees, annual report was approved on ... the board of trustees by: and signed on behalf of P von Lany Trustee
The Sustainable Natural Resource Management Association (UK) Independent Examinerfs Report to the Trustees of The Sustainable Natural Resource Management Association (UK) Year ended 31 December 2023 I report to the trustees on my examination of the financial statements of The Sustainable Natural Resource Management Association (UK) (Ihe charity'} for the year ended 31 December 2023. Responslbilities and basls of report As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 ('the Act,). I report in respect of my examination of the charily's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5){b) of the Act. Independent examinerfs statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the 8xamination giving me cause to believe thal in any material respect- accounting records were not kepl in respect of the charity as required by section 130 of the Act., or the financial stalements do not accord with those records. or the financial statements do not comply with the applicable requirements conceming the form and content of accounts sel out in the Chartties (Accounts and Reports) Regulations 2008 other than any requirement that the accounls give a Yrue and fai¢ view which is not matter considered as part of an independent examination. I have no concems and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. N Smy ACA Independent Examiner West¢otts (SWI LLP Chartered Accountants Queens House New Street Honiton Devon EX14 18J Date: 18 Jc3
The Sustainable Natural Resource Management Assoclatlon (UK) Statement of Financial Activities Year ended 31 December 2023 2023 Restricted funds Total funds Total funds 2022 Unrestricted funds Note Income and endowments Donations and legacies Investment income 44,436 132 44.436 132 67,343 Totsl income 44,568 44,568 67,350 Expenditu Expenditure on raising funds.. Costs of raising donations and legacies Expenditure on charitable activities Totsl expenditure 21.662 27,105 21,662 27,605 25,954 39,717 500 48,767 49,267 65,671 Net {expenditureyincome (4,199) (500) (4,699) 1,679 Transfers between funds 100 (100) Net movement In funds (4,099) (600) (4,699) 1,679 Reconciliation of funds Total funds brought forward Total funds carrled forward 17,692 600 18,292 13,593 16,613 13,593 18,292 The statement of financial adivities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 11 to 19 fonn part of thèse Ilnancial statements.
The Sustainable Natural Resource Management Assoclation (UK) Statement of Financial Position 31 December 2023 2023 2022 Netè Current assets Deblors Cash at bank and in hand 12 963 15.403 3,008 19,450 16,366 22,458 Creditors: amounts falllng due within one year Net current assets 13 2,773 4,166 13,593 13.593 18,292 Total assets less current liabilities 18,292 Net assets 13,593 18,292 Funds of the charity Reslricted funds Unrestricted funds 600 17,692 13,593 13.593 Total charity funds 14 18,292 These financial statements were approved by the board of trustees and authorised for issue on and are signed on behalf of the board by= P von Lany Trustee The notes on pagas 11 to 19 form part of these flnanclal statements. 10
The Sustalnable Natural Resource Management Association (UK) Notes to the Financial Statements Year ended 31 December 2023 General infomiation The charity is registered charity in England and Wales and is unincorporated. The address of the principal office is 4 Broadway, Fore Street, Hemyock, Devon. EX15 3RF. Statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Stsndard applicable in the UK and the Republic of Ireland,, the Statement of Recommended Praclice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charilies SORP (FRS 102)) and the Charities Act 2011. Accounting pollcies Basis of preparation The financial stalements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. Th8 financial statements are prepared in sterling, which is the functional currency of the entity. Going concem There are no material uncertainties about the charity's ability to continue. Cashflow statement The charity has taken advantage of the exemption in FRS102 from the reqUirnent to produce a cashflow statement because it is a small charity. Judgements and key sources of estimation uncertainty The preparation of the financi81 statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experien and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purF)oses. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the t8rms of an appeal, and fall into one of two sub-classes.. restricted income funds or end0ent funds. 11
The Sustainable Natural Resource Management Association (UK) Notes to the Flnanclal Statements (eontinu8dJ Year ended 31 December 2023 Accounting policies (contlnuedj Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably rneasud. The following specific policies are applied to particular categories of income-. income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. legacy income is recognised when receipt is probable and entitlement is established. income from donated goods is measured at the fair value of the goods unless this is impractical to measufe reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received rf the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracls for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recoVed. and is classified under headings of the statement of financial activities to which it relates- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries. including those support costs and costs relating to the govemance of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the resour. Direct costs attributable to a single activity are allocated directly to that aclivity- Shared costs are apportioned beeen the activities they contribute to on a reasonable, justifiabl8 and consistent basis. 12
The Sustainable Natural Resource Management Association (UK) Notes to the Financial Statements (Continu) Year ended 31 December 2023 Accounting policies (eofttinu¢dJ Flnancial instruments A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial inslruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the aangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debl instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Donations and legacies 2023 Unrestricted Funds Restricted Total Funds Funds 2023 Donations Individuals and Trusts Just Giving (General) 5,611 5.611 Other donations and legacies Donations generated by Direct Mail 38,141 38,141 44,436 44,436 2022 Unrestricted Funds Restricled Total Funds Funds 2022 Donations Individuals and Trusts Just Giving (General) Humanitarian Assist 10.307 71 10,307 71 10,000 10,000 Other donations and legacies Donations generated by Direct Mail 46,965 46,965 57,343 10,000 67,343 13
The Sustainable Natural Resource Management Association (UK) Notes to the Financial Statements (continued) Year ended 31 December 2023 Investment income Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Bank InteSt 132 132 Costs of raising donations and legacies Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Cost of public appeals Other costs of generating funds 17,114 4,548 17,114 4,548 21,099 4,855 25,954 21,099 4,855 21,662 21,662 25,954 Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Cost of public appeals - Direct Mail campaign 17,114 17.114 21,099 21,099 Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Other costs of generating funds - UK travel Consultancy Donors and grant reporting Just Giving expenses 212 3,306 1.026 311 212 3,306 1,026 311 3,306 1.026 216 3,306 1.026 216 4.548 4.548 4,855 4,855 14
The Sustainable Natural Resource Management Association (UK) Notes to the Flnancial Statements (continued) Year ended 31 December 2023 Expenditure on charitable activities by fund type 2023 Total Funds 2023 Unrestricted Funds Reslricted Funds Field activity in Ethiopia - wOaSha - Fuel saving stoves 500 Trainlng and support in Ethiopia - SET staff training and operational support Technical and policy advice 13,527 2,018 13,527 2.018 Public awareness 3,032 3,032 Support costs 8,528 8,528 27,105 27,605 2022 Total Funds 2022 Unrestricted Funds Restricted Funds Field activity in Ethiopia . Wofwasha - Fuel saving stoves 8,015 8,015 Training and support In Ethiopia Visits to Ethiopia SET staff training and operational support Technical and policy advice Proposal and report writing 268 8,089 2,018 5,000 2,735 3,003 8,089 2,018 5,000 Public awareness Project development 3,032 3,032 1,015 1.015 Support costs 9,545 9,545 27,952 11.765 39.717 15
The Sustalnable Natural Resource Management Assoclatlon (UK) Notes to the Financial Statements Iconlinuedj Year ended 31 December 2023 Expenditure on charitable activitles by activity type 2023 Total Funds 2023 Unrestricted Funds Restricted Funds Office costs Accounlancy fees Independent examination f88s Cost of trustees, meetings Management costs 4,051 1.426 950 83 2,018 4,051 1,426 950 83 2,018 8,528 8,528 2022 Tolal Funds 2022 Unrestricted Funds Restricted Funds Office costs Accountancy fees Independent examination fees Cost of trustees, meetings Management costs 4,940 1,426 950 211 2,018 4,940 1,426 950 211 2,018 9,545 9,545 Independent examination fees 2023 2022 Fees payable to the independent examiner for.. Independent examination of the financial statements 950 950 10. Staff costs The charity had no employees during the current or previous year. 11. Trustee remuneration and expenses No remuneration or other benefrts from employment with the charity were received by the trustees. Two trustees were re-imbursed expenses of £83 (2022: £348) during the year. 12. Debtors 2023 2022 Prepayments and accrued income Other debtors 356 2,652 963 963 3,008 16
The Sustainable Natural Resource Management Association (UK) Notes to the Financial Statements (coniijjued) Year ended 31 December 2023 13. Creditors: amounts falling due within one year 2023 2022 Trade creditors Accruals and deferred income 295 2,478 1,748 2,418 2,773 4.166 14. Analysis of charitable funds Unrestrlcted funds 2023 At 1 January 2023 At 31 December 2023 Income Expenditure Transfers General funds 17,692 44,568 (48,767) 100 13,593 2022 At 1 January 2022 At 31 Dernber 2022 Income Expenditure Transfers General funds 10,013 57,350 (53,9061 4,235 17,692 The object of the charity is the advanment of education. the protection of health and the relief of poverty of the people of Africa, especially Ethiopia. General unrestricted funds are funds held in reserve to be made available for the purpose of furlhering the objectives of the charity whilst not being restricted to any specific project or itam of expense. Designated funds are general unrestricted funds which have been allocated by the Trustees, to a particular project. These funds are not restricted by the original donor. 17
The Sustainable Natural Resource Management Association {UK) Notes to the Financial Statements (continved) Year ended 31 December 2023 14. Analysis of charitable funds (contlnuod) Restrlcted funds 2023 At 1 January 2023 Income Expenditure Transfers At 31 December 2023 Metema Covid 19 Wofwasha - Fuel saving stoves Humanitarian Assist 600 (600 500 1500) 600 (500) (100) 2022 At 1 January 2022 Income Expenditure At 31 December 2022 Transfers Metema Covid 19 wOaSha - Fuel saving stoves Humanitarian Assist 600 6,000 600 (8,015) (3,750) {11,765) 2,015 (6,250) (4,235) 10,000 6,600 10,000 600 These funds are specifically ring fenced for the prosects described earlier, supported by donors and held in reserve prior to transfer to Ethiopia. 15. Analysis of net assets between funds 2023 Unrestricted Funds R8Stricted Total Funds Funds 2023 Current assets Creditors less than 1 year Net assets 16,366 (2.773) 13,593 16,366 12,773) 13,593 2022 Unrestricted Funds Restricted Total Funds Funds 2022 Current assets Creditors less than 1 year Net assets 21,858 (4,166) 17,692 600 22,458 (4,166) 18.292 600 18
The Sustainable Natural Resource Management Associatlon {UK) Notes to the Financial Statements (contInu) Year ended 31 December 2023 16. Related parties Executive officer costs and allocation These allocations are based on best estimates of time apportioned to the activities indicated. Time ° £ cost Charitable activities Technical, policy and field support Public awareness 18 26 2.018 3,032 Other expenditure Governance 18 2,018 Cost of raising funds Fund raising Writing and reporting to donors Total apportioned costs 1,026 3.306 29 100 11,400 19